ch.9 SA

Refer to Figure 9-10. Producer surplus plus consumer surplus in this market before trade is _______________.

A + B + C

Refer to Figure 9-10. Producer surplus plus consumer surplus in this market after trade is _______________.

A + B + C + D

Refer to Figure 9-10. Producer surplus in this market after trade would be _____________.

C

Refer to Figure 9-13. Producer surplus with free trade would be _______________.

G

A tariff is a tax placed on _______________.

imported goods that raises the domestic price above the world price

When a country allows free trade, ________________.

the domestic price will equal the world price

Refer to Figure 9-13. Consumer surplus with free trade would be _____________.

A + B + C + D + E + F

Refer to Figure 9-9. The quantity of air conditioners imported into Kenya is ______________.

Q2 - Q1

Refer to Scenario 9-1. If trade in tomatoes is allowed, U.S. consumers of tomatoes ___________.

will be worse off

Refer to Scenario 9-1. If trade in tomatoes is allowed, total well-being in the United States ________________.

will increase

Refer to Figure 9-14. The loss in total surplus when the quota is imposed would be _______________.

$200

Refer to Figure 9-5. The amount of revenue collected by the government from the tariff is _____________.

$400

Refer to Figure 9-1. With free trade, producer surplus would be ________________.

$472.50

Turkey is an importer of goose down pillows. The world price of these pillows is $50. Turkey imposes a $7 tariff on pillows. Turkey is a price-taker in the pillow market. As a result of the tariff Turkey's price of pillows will be _____________.

$57 and the quantity of pillows purchased will decrease

Refer to Figure 9-4. With free trade, total surplus would increase by _____________.

$75

Refer to Figure 9-14. As a result of the quota consumer surplus falls by

$900

Refer to Figure 9-15. After the quota, deadweight loss would be equal to ______________.

D + F

A tariff is ______________.

a tax on imported goods

Countries usually impose restrictions on free foreign trade to protect ____________.

domestic producers

Refer to Figure 9-4. If this country allows free trade in wagons, consumers will _____________.

gain by $240

The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes _____________.

harm the United States as a whole because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue

Refer to Figure 9-1. This country ________________.

has a comparative advantage in baskets

A country has a comparative advantage in a product if _____________.

its domestic price is below the world price

Refer to Figure 9-4. If this country allows free trade in wagons, producers will ______________.

lose by $165

Refer to Figure 9-5. Imposing a tariff on carnations _______________.

reduces imports by 200